I took a little time off from writing for a variety of reasons: i) the markets were on a treadmill and pretty much went nowhere for about a month; ii) to take some time off to head east, spend time with family and enjoy the Thanksgiving holiday and long weekend; and, iii) I waited till the Standard and Poor’s 500 Index (SPX) eclipsed and held on a closing basis the 2,600 mark (which it did last Friday).
Recall that as the year began, I placed a 2,600 price target for the SPX. That prognostication was made in the spirit of the old Wall Street Week with Louis Rukeyser (it’s hard to believe he passed away eleven years ago) whereby I made my year-end pick without the luxury of making any changes thereafter.
So while I would like to take a victory lap, we still have five weeks left until the ball drops in Times Square. Still, I will pat myself on the back for positioning the LakeView Growth Portfolios for that upward advance in the SPX.
Over the course of the past month, I consolidated positions within strategies to hold less positions and bulked up on those stocks in the portfolios that I have greater confidence to outperform the SPX (or a strategy’s benchmark target) in 2018.
I do believe that the 2,600 level will hold and may add some more yardage on before the year ends. Given large amounts of cash on the sidelines, we could see the equity markets pull away in the homestretch of 2017, much like Ron Turcotte rode Secretariat to his 31-length victory in the 1973 Belmont Stakes.
Can we make it to SPX 2,700 this year? Don’t rule it out. However, failure to pass the tax law could put a monkey wrench into the Santa Claus Rally.
Lastly, it finally appears that the hype over Black Friday has begun to peter out and most retail advertising dollars are being redeployed into online advertising for online sales. Let’s see how today, Cyber Monday pans out.
Disclosure: At the time of this commentary Scott Rothbort, his family and/or clients of LakeView AssetManagement, LLC was long SSO & SPXL— although positions can change at any time.
Scott Rothbort is the President & Founder of LakeView Asset Management, LLC, a registered investment advisor specializing in high net worth private wealth management. For more information on investing with LakeView Asset Management, LLC call us at 888-9LAKEVIEW or request more information by clicking on the contact button on the top right hand corner of the website. LakeView Management, LLC is a Nevada LLC, with its principal office located in Henderson, NV and branch office located in Millburn, NJ
Scott Rothbort is also the publisher of the LakeView Restaurant & Food Chain Report, a newsletter focusing in on food, restaurant, beverage and agricultural stocks. An individual subscription to the newsletter can be ordered at www.restaurantstox.com Furthermore; Scott is also a professor at the Seton Hall Stillman School of Business in South Orange, NJ.
– Read Scott’s intra-day thoughts and comments on Scutify for which he is a co-founder of its parent company Wall Street All-Stars, LLC
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